Note 11 - Net Loss Per Share Attributable to Common Stockholders

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Earnings Per Share [Text Block]

11. Net Loss per Share Attributable to Common Stockholders

As described in Note

2,

Summary of Significant Accounting Policies, the Company computes basic and diluted loss per share using a methodology that gives effect to the impact of outstanding participating securities (the “two-class method”). As the years ended

December 31, 2018,

2017

and

2016

resulted in net losses, there is

no

income allocation required under the

two

-class method or dilution attributed to weighted-average shares outstanding in the calculation of diluted loss per share. In

2017

the net loss applicable to Common Stock did

not

equal net loss due to the accretion of the beneficial conversion feature of Preferred Stock in the amount of

$6.7

million. The beneficial conversion feature was initially recorded as a discount on the Preferred Stock with a corresponding amount recorded to Additional Paid-in Capital. The discount on the preferred stock was then immediately written off as a deemed dividend as the Preferred Stock does

not

have a stated redemption date and is immediately convertible at the option of the holder.

The following Common Stock equivalents, presented on an as converted basis, were excluded from the calculation of net loss per share for the periods presented, due to their anti-dilutive effect:

	Year Ended December 31,
	2018		2017		2016
Outstanding stock options		4,597,226		2,681,072		2,166,254
Convertible preferred stock		22,112,775		22,112,775		-
		26,710,001		24,793,847		2,166,254